SEZ INCENTIVES

All licensed special economic zone enterprises, developers and operators shall be granted exemption from all taxes and duties payable under the Excise Duty Act, Income Tax Act, East African Community Customs Act and the Value Added Tax Act, on all special economic zone transactions. Additional incentives are as follows:

  • 10 years Tax Holiday
  • 15% Corporate tax for another 10 years
  • Duty and VAT exemption
  • Single Licence
  • Exemption from stamp duty and
  • Exemption from withholding tax

 

2. Subject to subsection (1), the licensed special economic zone enterprises, developers and operators shall be granted the following exemptions from:

  1. Stamp duty on the execution of any instrument relating to the business activities of special economic zone enterprises, developers and operators;
  2. The provisions of the Foreign Investments and Protection Act relating to certificate for approved enterprise;
  3. The provisions of the Statistics Act;
  4. The payment of advertisement fees and business service permit fees levied by the respective County Governments’ Finance Acts;
  5. General liquor license and hotel liquor license under the Alcoholic Drinks Control Act, 2010;
  6. Manufacturing license under the Tea Act;
  7. License to trade in unwrought precious metals under the Trading in Unwrought Precious Metals Act;
  8. Filming license under the Films and Stages Plays Act
  9. Rent or tenancy controls under the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act; and
  10. Any other exemption as may be granted under this Act in consultation with the Cabinet Secretary for that matter, by notice in the Gazette.

3. The licensed special economic zone enterprises, developers and operators shall be entitled to work permits of up to twenty percent of their full-time employees;
4. Despite subsection (3), on the recommendation of the Authority additional work permits may be obtained for specialised sector
5. Taxable services provided for direct and exclusive use in the construction and infrastructural works in industrial and recreational parks of one hundred acres or more
6. The supply of taxable services to special economic zone enterprises, developers and operators licensed under the Special Economic Zones Act in the case of a special economic zone
7. Income tax for enterprise, developer and operator, 10% for the first ten years from the date of the first operation and thereafter 15% for another ten years.